China will levy a resource tax on coal based on sales rather than production from Dec. 1 and the rate will be between 2 to 10 percent, taxation authorities announced on Saturday.

The Ministry of Finance and the State Administration of Taxation said in a joint statement that the tax rate will be decided by provincial governments within the range.

In addition, "resource compensation fees" will be ceded starting Dec. 1 to reduce financial burdens on coal miners, which are hit by falling prices, according to the statement.

The tax is part of ongoing tax reform in the coal sector initiated in a State Council executive meeting late September.

China reformed resource tax on crude oil and natural gas in 2011. The statement said similar reforms will be gradually expanded to other sectors.

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